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The EU is launching an investigation into the aluminum market to protect the blocked block industry from an increase in free imports displaced by Donald Trump tariffs.
The European Commission will notify the investigation, which aims to verify a sudden increase in imports and cover all trade partners on Wednesday, according to a first Financial Times document.
Brussels will impose countermeasures if the probe identifies such an increase in aluminum imports. Also decided to tighten the gaps in its tariff mode for steel imports.
The document says 25 percent of aluminum tariffs announced by the US president last week “are likely to worsen the situation” for a sector that has been hit by high energy prices, slow demand and free imports.
Brussels has promised to retaliate against Washington with tariffs up to 26BN of US products.
But the Aluminum probe shows the impact of the US president’s tariffs cascading the whole globe as the Commission tightens its rules against third -country imports and a wider trade war approaches.
The EU document underlines what it says is “an important threat of deviation from trade from multiple destinations” due to last week’s tariffs.
He notes that block aluminum makers have “lost the significant share of the market over the past decade”.
In addition to Norway and Iceland, which are part of the Block’s economic zone and can be excluded, the main metal exporters in the EU are the United Arab Emirates, Russia and India.
The block decided last month to phase the imports of Russian aluminum by the end of 2026.
While the US has used security bases to justify its measures, the EU will base its response to any increase in aluminum imports in traditional trade protection law based on the rules of the World Trade Organization.
Its protection measures can echo the previous steps in steel, for which in 2018 it imposed a 25 percent fee for imports that exceed a certain quota.
Steel safeguards will expire in June 2026 but the Commission’s document says it will provide appropriate protection for the industry beyond that date.
The production of the 2023 block steel has been the lowest since the records began, with the exception of the pandemic years.
Pressure on the industry “is likely to worsen” as other countries increase tariff barriers to keeping Chinese metal blocked by the US, the commission said. She added that the EU can become the “main basis of excess global capacity” for steel.
The commission will expand its steel measures to prevent China from using third countries to bypass them.
It will also consider a plan to crack down on nations that limit scrap exports to the EU with a mutual ban.
EU scrap steel exports have doubled in recent years to calculate 20 percent of production, denying steel manufacturers a raw material.
Draft Action Plan metal, which may still change prior to publication, was first reported by Table Media.
The action plan also promises greater protection under the carbon border tax that comes into force next year, as well as efforts to help the industry reduce its carbon emissions.
Companies have complained that they cannot allow to invest in new technology such as hydrogen explosion furnaces.
The steel industry estimates that it should spend € 14BN per year by 2030 to decarbonize. “Most of these projects are not likely to be economically possible in the current environment,” the document said.
The commission suggests that member states can reduce energy taxes for the heavy industry and provide greater subsidies for hydrogen.
It will encourage clients to buy green steel, which is more expensive than conventional supply, changing procurement rules and establishing sustainability and sustainability measures for many industrial products.
The Commission refused to comment on the proposal, but said its action plan would show additional specific priority actions of the sector, as well as long -term measures to replace trade protection measures expireing in June 2026.
